NRI/OCI Buying Property in Goa: A Complete Legal Guide to Steps, Rules & Compliance

Goa is one of the most popular and sought after real estate destinations in India amongst NRIs and OCI cardholders which extends far beyond the beautiful beaches and culture it holds. With its spectacular coastline, flourishing hospitality and tourism sector, Goa offers attractive opportunities for NRIs and OCI cardholders for both investment and personal use. There has been a persistent appreciation in the prices and hence in the demand for growing luxury segment. 

Lately various Non-Resident Indians (NRIs) and OCI Cardholders, are investing and buying real estate in Goa, but the transaction must comply with FEMA and RBI regulations, which is the regulatory framework that governs the NRI property purchases in India. Any lapse or non-compliance can result in transaction invalidity, financial penalties, or prolonged legal disputes.

According to the provisions of the Foreign Exchange Management Act (FEMA), 1999,  “person resident in India” means-

(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include.(A) a person who has gone out of India or who stays outside India, in either case.

(a) for or on taking up employment outside India, or 

(b) for carrying on outside India a business or vocation outside India, or 

(c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; 

Therefore, as per FEMA, an NRI is a person who stays outside India for more than 182 days in a financial year i.e. April to March. The residential status in FEMA and the Income Tax Act are different and hence both must be assessed independently. The Income Tax Act has more complex bifurcations. 

Additionally, Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) cardholders generally receive the same property purchase rights as NRIs in India, though with some distinctions on agricultural land.

YES, both NRIs and OCI cardholders can buy properties in Goa, which must comply with the provisions of the Reserve Bank of India and the Foreign Exchange Management Act, 1999. There are certain restrictions and eligibility requirements that must be catered to. 

1. Who are Eligible?

The following can purchase an immovable property in Goa:

• Non-Resident Indians (NRIs).

• Overseas Citizens of India (OCI) Cardholders.

• Persons of Indian Origin (PIOs) who hold OCI status.

2. What type/category of Properties Can Be Purchased by NRIs and OCI Cardholders?

NRIs and OCI cardholders may purchase:

• Residential apartments.

• Villas and independent houses.

• Residential plots.

• Commercial properties such as offices and shops.

3. What NRIs & OCI cardholders Cannot Buy?

NRIs and OCI cardholders cannot purchase:

• Agricultural land

• Plantation property

• Farmhouses

4. Exception

Cases where the above-mentioned properties (in point C above) are acquired through either inheritance or gift, an NRI or an OCI cardholder can acquire such properties only through prior approval from the RBI, which is not very easily granted, and hence is rare.

In Goa, the land classification is governed by the-

1. Goa Land Revenue Code.

2. Regional Plan for Goa.

Before buying or investing into real estate in Goa, it is therefore important to verify land use classification, for which the Regional Plan zoning certificate and Record of Rights should be obtained from the local Mamlatdar office before proceeding for any purchase.

Further, many properties in Goa fall under the ambit of Coastal Regulation Zones. Construction and development activities may be restricted depending upon the applicable CRZ classification and hence the same should be verified too. 

Step1- Verification of the Property's Title and Ownership

Before investing into or purchasing an immovable property in Goa, it is important that the Title search and verification is conducted for at-least 15-30 years. As Goa follows the Portuguese Civil Code for property disputes, the succession and inheritance laws of Goa differ from the rest of India. Therefore it is necessary to verify –

1. The current title/ownership is under who’s name

2. If there is any encumbrance on the property such as any loan, mortgage etc. 

3. Obtain confirmation of no dues or violations from the Panchayat/Municipal authorities

4. If the building plan is approved by the TCP department or relevant Panchayat

5. If there is any Pending litigation or government acquisition notices on the property etc. 

6. Check the Conversion Sanad (if land was converted from agricultural use)

7. Verification should be undertaken regarding Occupancy Certificate, Completion Certificate Town and Country Planning approvals

Step 2 — Check RERA Registration (For Under-Construction Properties)

If an under-construction property is being purchased, it is important to confirm that the  same is registered under the Real Estate (Regulation and Development) Act, 2016 (RERA). The intended purchaser must verify the-

1. Check project registration number

2. completion timeline, 

3. builder's past projects

4. Look for any complaints filed against the developer etc.

Step 3 – Execute a Power of Attorney (If NRI/OCI Cannot Be Present in Goa physically)

A Power of Attorney is an authorisation wherein the NRIs/OCI cardholders who cannot travel to India, can authorize a representative to take care of the signing procedure on their behalf. POAs are of two types, i.e. A General Power of Attorney and Specific Power of Attorney. In cases of purchasing a property, it is generally recommended to draft and execute a Specific Power of Attorney, that specifies the authorisation to be given and also limits the powers of the attorney, specific to the transaction involved.

A Special Power of Attorney may be executed in favour of a trusted representative who can be physically present for signing the documents, attend registration proceedings before the sub-registrar, and take possession of the property.

Prerequisites for executing the POA –

1. The POA must be drafted meticulously by a qualified and professional lawyer specifying the authorisation.

2. Once drafted, the POA must be executed before the Indian Embassy/Consulate.

3. The POA must be signed, attested and apostilled.

4. The POA must be adjudicated upon arrival in India before use.

Step 4— Execute an Agreement to Sell

An agreement to sell is an important document that signifies that the deal has been struck. Once due diligence is complete, both parties execute an Agreement to Sell, which defines purchase price, payment schedule, possession date, penalties for breach, and earnest money paid. The agreement must specify that payment will be made through NRE/NRO/FCNR banking channels, which is significant for FEMA compliance.

The Agreement to sell must be vetted by a lawyer to review if all the clauses are in compliance with the law and not hampers the interest of the buyer.

Step 5 — Payment Through Proper Banking Channels (FEMA Compliance)

Under FEMA and RBI guidelines, NRIs must route all property payments exclusively through approved channels i.e-

• Non Resident External Account.

• NRO (Non-Resident Ordinary) Account.

• FCNR (Foreign Currency Non-Resident) Account.

• Foreign currency via banking channels.

Cash payments are strictly prohibited as per FEMA regulations.

Step 6 — Registration of Sale Deed and Payment of Stamp Duty and Registration Fee in Goa

The Sale Deed must be executed and registered before the jurisdictional Sub-Registrar office, which transfers the ownership to the purchaser. The stamp duty must also be paid which is generally around 3%- 4%.

Step 7 - Mutation of Property

After registration, the purchaser should apply for mutation of the property records in the revenue authorities' records.

An NRI or OCI buyer is generally required to furnish:

1. Identification Documents such as Passport, OCI Card (if applicable) and PAN Card, AADHAR card.

2. Address Proof such as Overseas residential address proof, Indian address proof (if available).

3. Financial Documents such as NRE/NRO bank account details, Tax identification documents (where required).

4. Photographs- Passport-sized photographs.

5. Property tax receipts (up to date).

6. NOC from housing society (for apartments).

Yes. NRIs can apply for home loans as most Indian banks and housing finance companies offer home loans to NRIs, subject to their eligibility requirements. Banks such as SBI (SBI NRI Home Loan), HDFC Bank, ICICI Bank, and Axis Bank etc. can be approached and the appropriate enquiries may be made. 

One important requirement is that the loan repayment must be be done from NRE/NRO account or direct remittance.

1. Not Carrying out due diligence on the property

The builders and property dealers may try to convince the buyers to skip due diligence and property verification. It is important that this step should be conducted as this is the very genesis of the transaction. Any loopholes in the title and ownership may attract various disputes and litigation in the long run.

2. Buying Agricultural Land Without RBI Permission- There is a prohibition on NRIs/OCI cardholders buying agricultural land in Goa under FEMA. RBI’s prior permission and approval is mandatory.

2. Making Cash Payments

Cash payments are not permitted. Any payment outside of banking channels violates FEMA regulations and can invite penalties.

3. Relying on Verbal Agreements

All terms and conditions of purchase must be in writing and the deeds must be registered to secure a fool proof transaction.

4. Not Verifying Coastal Regulation Zone (CRZ) Status

Properties within 200 metres of the High Tide Line (HTL) face significant construction and use restrictions under the CRZ Notification, 2019, and hence these intricacies must be verified before-hand.

5. Ignoring Mutation After Purchase

After registration, the property must be mutated at the local Mamlatdar office.

Buying property in Goa as an NRI or OCI cardholder requires careful consideration, due diligence and compliance. From carrying out verification of property and land zone to appointing a trustworthy POA holder, executing the sale deed, ensuring FEMA-compliant payment channels, TDS deductions, and proper registration, each step carries its own importance in concluding a legally compliant transaction.

The process should be carried out under strict provisions of the FEMA, Income Tax Act, RBI Guidelines and RERA so carry out a  structured transaction which can help ensure a secure and legally sound property acquisition.